US$12M loan for Linden water project approved by IDB

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The Inter-American Development Bank (IDB) has approved a US$12 million loan to improve quality, efficiency of delivery and sustainability of the drinking water supply in Linden.

The funds will help the town to cut energy use; improve delivery, quality and continuity of the water supply system; reduce the level of revenue loss due to physical and commercial reasons; and strengthen the operational and maintenance performance of the Guyana Water Incorporated (GWI).

IDB said the five-year programme will help reduce GWI’s annual energy spending in Linden from Gy$46.4 million to Gy$28 million (US$232,000 to US$140,000), while building and rehabilitating 10 kilometres of mains, reducing non- revenue water (NRW) levels from 65 per cent to less than 50 per cent; and bringing water pressure to adequate levels in all households.

Works will include construction of two treatment plants and two large reservoirs aimed at ensuring good quality, better pressure, and continuity of the water supply. Activities to help reduce NRW include the development of a management plan to address, monitor and control physical and commercial losses; rehabilitation of part of the network, and support for a metering programme currently under implementation by GWI.

Additionally, the programme will address the institutional strengthening needs of GWI in Linden through the preparation of manuals and training activities on operation and maintenance, standard operating procedures, environmental and social safeguards, water quality monitoring procedures, and data collection for monitoring purposes.

The bank’s financing consists of a six- million loan from its ordinary capital for a 30-year term, with a six-year grace period and a variable interest rate based on LIBOR, and another credit also of six million from the IDB’s Concessional Fund for Special Operations for a 40- year term, with a 40- year grace period and 0.25 per cent interest.

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